Bitwise proposes a Bitcoin-Ethereum spot ETF to the SEC, aiming to balance exposure to the two leading cryptocurrencies by market cap.
Bitcoin and Ethereum together represent over 70% of the crypto market, offering significant investment potential for portfolios through the proposed ETF.
The proposed ETF follows strong inflows for Bitwise’s Bitcoin spot ETF, making it the fourth-largest crypto fund issuer by assets.
Bitwise Asset Management has proposed a new Bitcoin-Ethereum-based spot exchange-traded fund (ETF) to the U.S. Securities and Exchange Commission (SEC). The filing, submitted on November 26, builds on the company’s successful Bitcoin spot ETF, which saw significant inflows since its January launch.
Enhancing Access to Top Cryptocurrencies
The proposed ETF seeks to provide balanced exposure to Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization. According to Bitwise, this initiative aims to simplify access for investors while diversifying portfolios with assets that dominate the crypto market. Combined, Bitcoin and Ethereum account for over 70% of the $2.2 trillion cryptocurrency market, reinforcing their significance in the digital asset ecosystem.
https://twitter.com/BitwiseInvest/status/1861492134546940203
Strategic Growth Through New Offerings
Besides the new proposal, Bitwise has made significant strides in the crypto ETF space. Following the approval of its Bitcoin spot ETF options, the company recorded inflows of $2.1 billion into its Bitcoin ETF product (BITB). This success solidifies Bitwise’s position as the fourth-largest issuer of crypto ETFs globally.
Ethereum-focused ETFs earlier this year. The Bitwise Ethereum spot ETF (ETHW), launched on the New York Stock Exchange in July, has attracted inflows totaling $390 million. While trailing competitors such as Fidelity’s Ethereum Fund (FETH) and iShares Ethereum Trust ETF (ETHA), which amassed $707 million and $1.8 billion respectively, ETHW reflects growing investor interest in Ethereum-focused assets.
Strategic Perspective from Leadership
Matt Hougan, Bitwise’s Chief Investment Officer, highlighted the unique relationship between Bitcoin and Ethereum, stating they complement rather than compete with each other. He likened their coexistence to the relationship between gold and tech stocks, emphasizing the diverse appeal of these blockchain giants to investors.
Consequently, Bitwise’s proposed Bitcoin-Ethereum ETF addresses the increasing demand for accessible, diversified crypto investment options. With its proven expertise in the crypto ETF space and substantial inflows, the company aims to further strengthen its position in the market.
